As the cryptocurrency industry continues to go from strength to strength in 2021, an increasing amount of attention is being paid to the altcoins that could represent the future of blockchain technology. One such coin is IOTA - which has its sights firmly set on the fourth industrial revolution.
IOTA (mIOTA) is designed to be a token for the Internet of Things; effectively set up for commerce between machine and machine. Whilst this may sound like something from a dystopian future, there are already billions of devices connected to the internet - from AI-enabled cars to smart ovens - and they communicate and exchange data with each other on a daily basis.
So it’s fair to say that IOTA is a forward-thinking cryptocurrency, but is it a good investment? Whilst it has faced criticisms in the past for potential weaknesses in its architecture, IOTA has been performing well in recent months and benefitted from the general upswing that hit the cryptocurrency market in the opening months of 2021.
All this surely makes it a good call to invest in IOTA for the long haul, right?
In the following IOTA price prediction for 2025 and 2030, we’ll see what some analysts are predicting for the token's future, as well as consider some of the factors affecting its potential price movement.
What is IOTA MIOTA?
IOTA’s Hardware Origins
IOTA actually started life as a hardware project, known as Jinn. That project initially developed general-purpose processors, for use in devices on the IoT. To fund the project, Jinn launched a crowd sale of tokens in 2014 - with some 100,000 tokens sold for roughly $250,000.
However, the original coin ran into regulatory issues as it had been sold as profit-sharing tokens - which may effectively have made them securities and subject to strict regulations. The project was re-invented in 2015, with IOTA coins being now sold as utility tokens.
The developers behind IOTA, Sergey Ivancheglo, Serguei Popov, David Sønstebø, and Dominik Schiener, have previously described their technology as a “public permission-less backbone for the Internet of Things that enables interoperability between multiple devices” - in other words, a system for enabling transactions between devices.
How is IOTA different?
On the blockchain side of things, IOTA’s founders sought to rectify what they saw as shortcomings with existing cryptocurrencies like Bitcoin and Litecoin, including issues with network speed and scalability. Central to this is IOTA’s Tangle system - which uses a proprietary algorithm, Curl, which IOTA’s developers claim is faster and more efficient than Bitcoin’s SHA256. IOTA is powered by its native cryptocurrency, mIOTA.
The Tangle does not user miners as other proof-of-work networks do. Instead, all network participants are effectively responsible for validating transactions. In a nutshell, When one transaction is sent, users must validate two other transactions. This means IOTA can offer feeless transactions and is significantly less power consumptive than the likes of Bitcoin. This makes the token ideal for machine-to-machine transactions, which often process numerous, small transactions.
However, the IOTA system has faced some criticism. In its current incarnation, the network used a central "coordinator" to ensure transaction security. As such, whether or not the network is truly decentralised has been called into question. It’s also been suggested that IOTA’s system is largely unproven and may not function effectively in the long term.
Looking at IOTA’s Historic Price Performance
When IOTA was reborn after the Jinn debacle, the first crowd sale of IOTA tokens saw approximately $500,000 USD and the network went live in 2016. The organisation did some rejigging of the coin structure, so the price per token at this stage isn’t much of an indicator of things.
However, fast forward to June 2017 and IOTA was trading at $0.636, before undergoing its first bull of that year, when prices surged $1.09 in August. However, this was just a drop in the ocean compared to what was to come in the winter of that same year, when IOTA skyrocketed to $5.29 in December - an increase of almost 750% on its price in June.
The price surge was largely driven by a wider crypto boom and, unfortunately for IOTA, it wasn’t to last. Despite a few upswings, prices went into decline into 2018 and dipped back below the dollar by April. IOTA underwent another impressive bull in May, reaching as high as $2.08 before dropping again. By January 2019, IOTA was trading at just $0.356.
IOTA MIOTA’s price-performance was less than inspiring for the remainder of 2019 and most of 2020. Prices remained in a more-or-less sustained decline and hit a low of just $0.13 in March 2020. The market uptick at the end of the year saw IOTA go into 2021 at a more respectable $0.30 before things started to get interesting.
Prices surged to $1.49 during the February boom - IOTA’s highest price for well over two years. There was a slight dip, before prices rallied again in March, taking IOTA as high as $2.44 in April. At the time of writing, IOTA MIOTA was holding steady at $2.11.
The Internet of Things: IOTA MIOTA’s Golden Ticket?
As noted above, IOTA was specifically engineered as a solution for devices on the Internet of Things (IoT) - but what exactly does this mean and how might it affect mIOTA’s price in the future?
Put simply, the Internet of Things is the interconnection of smart devices. This includes traditional computers and laptops, but also intelligent devices, such as home thermostats, webcams, smart speakers and wearable technology. These devices are able to communicate and share data with each other in real-time, utilising sensors and processors to gather and analyze data taken from their environments.
So what does this all mean in the real world? Well, imagine you are running low on milk, but instead of going to the store, a smart refrigerator connected to the IoT senses you are running low, orders the product for you and has it delivered via a pre-arranged provider. This may sound like a banal example, but it is a very realistic application of the IoT in our future every day lives. In reality, the possibilities of the IoT are limitless.
Of course, for your refrigerator, smart assistant or automobile to be able to automatically order things on your behalf, it requires a means to make payments. This is where IOTA’s mIOTA comes into play.
For machines to communicate relatively small amounts of (paid for) data and conduct transactions in high volumes, they need a means of payment that is low cost and highly scalable. Existing blockchains, such as Bitcoin, aren’t up to the task as they involve high fees, are hugely resource-intensive and prone to network slowdown.
IOTA’s unique architecture aims to mitigate all of these issues. By sharing the burden of transaction verification across each network participant, IOTA is perfectly placed to be used by billions of devices processing countless minor transactions.
There are believed to be in excess of 42 billion devices currently connected to the IoT. By 2025, Statista forecasts suggest that that number will reach 75 billion. It doesn’t take a genius to figure out that a payment system preferred by such devices will end up being very valuable indeed.
Is IOTA’s Infrastructure Up To The Job?
To the average armchair futurist, betting on IOTA might seem like a sure thing - but whereas the IoT may well represent the next era of connected living, there are no guarantees that IOTA will feature in its operation.
Whilst IOTA’s Tangle does appear to be well placed for use on the IoT, it isn’t without its problems and has faced criticism over several apparent shortcomings.
Firstly, it stands to reason that any automated, machine-to-machine payments would need to be both highly secure and highly reliable. IOTA suffered a phishing attack in 2018 that saw almost $4m mIOTA stolen. The development team were quick to get to work improving the network’s security, but naturally, this has left many uncertain as to whether IOTA is fit for purpose.
MIT's Digital Currency Initiative team have also voice concerns after they found weaknesses with IOTA's Curl algorithm. The function produced the same output when it was given two different inputs - a definite no-no in the world of cryptocurrency. Once again, the IOTA team were quick to fix the issues and there have been no reported instances since.
Both the IoT and IOTA are very much nascent technologies. It seems the latter's success depends on its developers and their ability to adapt to the no doubt numerous challenges that will arise in creating a faultless machine-to-machine payment system.
Check Out: Why IOTA Is Going To Explode
What’s Next: IOTA Price Predictions for 2025
Any IOTA price prediction is subject to numerous factors - some of which we have touched upon above. That being said, one way in which accuracy can be improved is by drawing together several IOTA price predictions and basing subsequent conclusions on the aggregated forecasts.
In the coming five years, many top analytical platforms are certainly optimistic about what IOTA can achieve.
Of the more optimistic IOTA price predictions, Coin Price Data has IOTA (MIOTA) reaching $3.5 by the end of 2021 and continuing to rise at an exponential rate over the next few years, potentially reaching $6 by 2025.
DigitalCoinPrice has put up similar figures for its own IOTA price prediction. The platform has MIOTA climbing to $4.73 by 2023 and continuing on an upward trajectory until reaching a respectable $6.63 per token by the end of 2025.
Perhaps a more realistic IOTA price prediction can be found over at TradingBeasts. They have MIOTA breaking the $2 mark at the end of 2021, then continuing to climb at a fairly modest rate, closing 2024 trading at an average price of around $4.55, by 2024 TradingBeasts believes the IOTA coin could reach as high as $5.25.
Elsewhere, the Economy Forecast Analysis IOTA price prediction points to a more eventful future for the altcoin. The platform has IOTA performing well across 2021, closing the year at $3. The platform then has MIOTA price peaking at an impressive $4.2 in 2022.
However, contrary to other IOTA price predictions, the website then sees MIOTA going into a protracted decrease, dropping as low as $2.5 by 2024. By 2025, the platform has IOTA recovering, climbing back up to around $3.5 by the end of the year.
Technical analysis carried out by Prime XBT has the IOTA token reaching an impressive $136 between 2022 and 2023. This is of course, very ambitious but having reached price growth exceeding 3000%, the platform warned that MIOTA could experience a downturn by the end of 2024, going into 2025.
Looking Further Ahead: IOTA Price Predictions for 2030
Given that a bet on IOTA is essentially a bet on the Internet of Things, any price predictions over the long term are subject to a huge amount of variables and can only really be taken as speculation, at best.
Looking further ahead, DigitalCoinPrice sees IOTA continuing to perform well and has speculated that the token could reach a trading price of $10.41 by the end of 2028 - which would represent price growth of almost 400% on the current value.
Elsewhere, CoinSwitch has made a very similar prediction. Analysts there believe that IOTA developers will continue to innovate as technology progresses and MIOTA has a very real chance of reaching $12.43 by 2030.
Coin Price Data is overwhelmingly optimistic. They have IOTA continuing to rise substantially each year between now and 2030, ending up at over $10 per token in 10 years.
A cryptocurrency research firm by the name of Crypto Research Report is calling for IOTA (MIOTA) to reach $7 by 2025, and $15 by 2030.
Conclusion: Should You Invest In IOTA?
Most IOTA price predictions suggest that the altcoin can expect to see significant growth over the coming years. Leading analysts vary wildly on their forecasts - but if even the most conservative predictions pan out, anyone who chooses to invest in IOTA could see decent returns.
With its potential as the go-to payment for the fourth industrial revolution, “should I invest in IOTA?” is inevitably a question currently under consideration by many forward-thinking crypto speculators. Looking at its underlying technology, IOTA is certainly well-placed to support machine-to-machine transactions and, as we have seen, there is likely to be huge demand for such facility in the near future.
However, it should be remembered that this technology is very much in its infancy and is largely untested. We have already noted one or two teething issues experienced by IOTA, but the developers have done an admirable job in going back to the drawing board and making necessary upgrades.
But therein lies the opportunity. At the time of writing, IOTA has a reasonably low cost-per-token, meaning investors can acquire a large holding with much smaller outlay than with, say Ethereum or Bitcoin. Of course, there is a fair bit of risk involved, but that’s true of any investment - particularly in the cryptocurrency sphere.
So, should you invest in IOTA?
Ultimately, most platforms predict steady growth for IOTA and as such it represents one of the more reliable investments in what is a very unpredictable market. IOTA may well prove to be an excellent investment over both the short term and long term.
We believe it could be a worthwhile addition to any diversified portfolio. Only time will tell how it fits into the future of connected technology, but one thing is for sure: IOTA is certainly one step ahead of the competition as the potential currency of the Internet of Things.
Read More: How to Buy IOTA - Beginner’s Guide
Where To Invest In IOTA
IOTA presents a very interesting investment opportunity indeed and it might well attract investors from outside of the crypto world.
If you are looking to buy IOTA (MIOTA) but are unsure where to go, we recommend checking out eToro. The platform allows you to buy and trade a selection of the top cryptocurrencies and also offers plenty of information on the markets and trading in general.
The platform has one of the best reputations in the industry and is fully regulated by the FCA. All you need to do to open an account is verify a few details and you can be up and running in minutes.
eToro – Best Platform to Buy IOTA
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Virtual currencies are highly volatile. Your capital is at risk.
Should I invest in IOTA?
If you’re looking to invest in cryptocurrency, then IOTA is definitely a good option.
IOTA is very much a cryptocurrency to keep an eye on. Its unique architecture makes it perfectly suited for the economy of the Internet of Things. In fact, its comparatively low price means now could well be a good time to add IOTA to your portfolio.
What are IOTA price predictions like for 2025?
Most IOTA price predictions for 2025 and beyond point to significant growth, but they tend to vary on exactly how much. For example, Coin Price Data believes IOTA can reach $6 by 2025, whilst TradingBeasts has it no higher than $5.25.
IOTA appears to have shaken off the technical issues of the past and has seen some impressive price movement in 2020. As such, many top crypto analysts are predicting growth over the next few years, with very realistic expectations that IOTA could break $5.00 per token by 2025.
Will IOTA overtake Bitcoin?
Realistically, Bitcoin is unlikely to be overtaken by any altcoin in the near future. However, investors should be aware that IOTA has a very different objective to its predecessor. Whereas BTC was envisaged as a new kind of peer-to-peer payment system for everyday transactions, MIOTA is intended to facilitate machine-to-machine transactions. As such, it could well be a good idea to buy IOTA and Bitcoin as part of a wider crypto investment strategy.
Where can I invest in IOTA?
If you are looking to invest in MIOTA but are perhaps new to the crypto market, then you’ll need to find a reputable broker. We recommend eToro for most users, as it is one of the most accessible platforms out there and has a solid reputation in the industry.
Should I invest in IOTA long term or short term?
Ultimately, whether to invest in IOTA in the long or short term depends on several factors - including your own investment goals. However, we believe that most IOTA investors will be looking at the long term - if IOTA becomes the currency of the Internet of Things, then those who have held onto their holdings could be in line for significant returns.
What will IOTA be worth in 2030?
IOTA’s long term price potential depends largely on whether it can do the job it set out to do. Ultimately long-term predictions are mostly guesswork, but leading platforms have forecast IOTA to reach anywhere between $10 and $12 per token by 2030.